Mobile Handset Population in Finland

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1 TKK HELSINKI UNIVERSITY OF TECHNOLOGY Mobile Handset Population in Finland

2 Contents Data collection Mobile handsets and data terminals Top mobile handset models in Finland Concentration of mobile handset population Penetration of handsets features I Penetration of handsets features II Mobile handsets by manufacturer Mobile handsets by OS and software platform Mobile handsets by form factor Mobile handsets by input method Mobile handsets by age and introduction year Summary Slide 2

3 Data collection Data collected using mobile operators reporting systems in Ticket (CDR) and subscriber information systems of Finnish GSM/UMTS operators Data primarily from 2 weeks or 1 month in Sep Oct, About 80-99% of Finnish mobile terminals included Participating operators: TeliaSonera, Elisa, DNA : Sonera, Elisa (+Kolumbus), DNA 2008: Sonera (+TeleFinland), Elisa (+Saunalahti+Kolumbus), DNA Very comprehensive sample of about 4 6 millions Survey studies with similar results commonly with max 10 3 respondents Data includes all mobile terminals observed at the network during the observation period Terminals of both postpaid and prepaid subscribers Mobile handsets and data terminals, limited data on other terminal types Some error due to mobile subscriber churn during the observation period, and differences in operator-specific data sets Some error due to unidentified terminals, and missing feature-data of handset models No data on Apple iphone obtained from the exclusive distributor Sonera Slide 3

4 Mobile handsets and data terminals Terminal type Mobile handsets 99.4% 98.7% 98.2% 95.1% Data terminals (data cards, USB modems, embedded data modules) 0.6% 1.3% 1.8% 4.9% Share of data terminals growing, particularly since fall 2007 Consistent with the growth of mobile broadband subscriptions observed by FICORA Other remarks Number of mobile subscriptions in Finland grown by almost 1 million between measurements in 2005 and 2008 Other device types (e.g. payment terminals, desktop phones) excluded due to incomplete data Slide 4

5 Top mobile handset models in Finland Rank Top 15 handset models in Finland (2008) Model name Nokia 1100 / 1108 Nokia 3310 Nokia 1600 Nokia 2760 Nokia 2610 Nokia 2310 Nokia 6060 Nokia 3510i / 3530 Nokia N73 Nokia E90 Communicator Nokia 6151 Nokia 6131 Nokia N95 Nokia 3110 Classic Nokia N70 Share of all handsets 5.1% 3.6% 3.2% 2.9% 2.9% 2.4% 2.4% 2.2% 2.2% 1.8% 1.8% 1.7% 1.7% 1.7% 1.7% Number of handsets* Top 3 basic telephones GSM-only, basic phone OS, no packet data capabilities Top 10 mostly 2G devices 3G among top 15: Nokia N73, E90, 6151, N96, N70 Handset population not as primitive as top list suggests! Low-end covered with smaller number of models, i.e. high-end more fragmented In low-end, units per model 2x as high as in high-end other metrics needed * Based on estimated number of handsets Slide 5

6 Concentration of mobile handset population Share of all handsets Cumulative share of all handsets 15% 12% 9% 6% 3% Top 100 handset models Top 100 handset models Shares of top 100 handset models Cumulative share of top 100 handset models Fragmentation of handset population increasing Top 50 in 2008: : 75% 2006: 83% 2005: 88% Broader handset offering? More models available? Growing popularity of highend handsets? Less hit models? Large number of different handset models, with marginal shares Over 1000 different handset models identified Slide 6

7 Penetration of handset features I EDGE WCDMA HSDPA WLAN GPS FM BlueTooth Infrared Penetration of handset features Features offering higher data transmission speeds spreading EDGE 44% 54% WCDMA 18% 25% HSDPA 2% 7% WLAN 6% 1 Especially 3G (WCDMA), due to handset bundling Very steep S curve, growth comparable to more mature features Slide 7

8 Penetration of handset features II Color display Packet data Penetration of handset features WAP HTML Java Camera MMS browser browser Many features nearing saturation with 70-8 penetration Color display, packet data, WAP browser, Java, But feature penetration is not adoption E.g. and MMS not adopted by over 6 of users Slide 8

9 Mobile handsets by manufacturer Mobile handsets by manufacturer 0.8% % 4.6% 3.1% 1.6% 0.8% 1.5% 2.3% 2.9% 3.4% 1.7% 3.9% 3.9% 4.6% 91.4% 89.7% 90.6% 89.8% Nokia Samsung Sony/Ericsson BenQ/Siemens Others Nokia s 9 market share remarkable First non-nokia handset ranked 67 th! Share of Samsung and Sony/Ericsson still growing BenQ/Siemens and Motorola decreasing Remark on market share Share of handset population not same as share of unit sales But handset retail data (collected by GfK) gives similar results Slide 9

10 Mobile handsets by OS and software platform Mobile handsets by OS and software platform 8% 1 9% 9% 2% 4% 4% 3% 1% 1% 9% 9% 15% 7% 1% 5% 2% 2% 35% 1 9% S80,UIQ 3. ed. S ed. 5. ed. 47% of Finnish handsets running Nokia S40 Substitutes basic Nokia OS Newer versions (3.-5. ed.) of S40 spreading quickly 51% 37% 37% 31% 29% 15% 23% 23% Nokia OS Nokia Series 40 Symbian OS Others 3. ed ed. Symbian share at 21%, mostly S60 3rd ed. Only 2% point growth since 2007 S40 now also benefiting from handset bundling? S40 also substituting Symbian, what is max share of Symbian? Slide 10

11 Mobile handsets by form factor Mobile handsets by form factor 3% 5% 6% 5% 4% 2% 5% 8% 12% 17% 18% Monolith most popular, but decreasing A.k.a. candybar, slab 93% 81% 72% 7 1/5 of handsets with clamshell form factor A.k.a. flip Monolith Clamshell Slide Communicator* Other remarks Popularity of Slide form factor growing Communicator* form factor with a small but stable share * Handsets with both monolith and flip forms (e.g. Nokia Communicator and Nokia E70) Slide 11

12 Mobile handsets by primary input method Mobile handsets by primary input method 0.1% 0.1% 0.1% 0.2% 3% 5% 5% 5% 97% 95% 95% 95% Numeric keypad QWERTY Touch screen* Numeric keypad still dominant input QWERTY handset share stable at 5% Mostly Nokia Communicators and E-series devices Touch screen marginal Growth during 2009? * No data on Apple iphone Slide 12

13 Mobile handsets by age and introduction year 3 25% 2 15% 1 5% 3 Mobile handsets by age Mobile handsets by year of introduction Mobile handset population renewing continuously Average age of handsets about 3 years I.e. difference between measurement year and model introduction year 2008: 3.1, 2007: 2.9, 2006: 3.0, 2005: 2.9 Not same as average lifetime, or average holding time, or average time handsets have been in use 25% 2 15% 1 5% Years 2005 and 2001 particular Models introduced in 2005 popular, due to handset bundling and marketing focus towards advanced handsets Fewer or less attractive models introduced in 2001? Models from 2000 and 2002 more popular Slide 13

14 Summary Data from mobile operators CDR and subscriber information systems with 80-99% (4 6 millions) of Finnish mobile handsets in falls Typical handset with candybar form factor (7 of all handsets), numeric keypad as primary input method (95%), and made by Nokia (9) Nokia S40 the largest developer platform (47%), share of Symbian (21%) not growing rapidly Fragmentation of handset population between different models increasing Do handset segments explain diffusion of features? Low-end population limits the penetration of mass market features (e.g. packet data, Java, MMS) High-end population defines the diffusion of emerging features (e.g. WLAN, GPS) Mid-range population (roughly 6 of total) needed in diffusion to mass market How are new features introduced to mid-range handsets? Slide 14

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